Commodity Trading Tips for Mustard Seed by KediaCommodity

Ajay Kumar Kedia 5 August 2014

Mustardseed Rmseed settled down -0.52% at 3620 tracking weakness in spot demand due to profit booking. However downside seen limited on improved demand for mustard meal and improved demand for mustard oil. Mustard meal export increased 17.6% to 99,054 tons in June 2014 compared to 84,198 tons in June 2013. The latest data compiled by Ministry of Agriculture stated that Indian kharif oilseeds have reported steady sowing progress from the last two to three weeks on the back of favourable rainfall in states like Rajasthan, Madhya Pradesh and Maharashtra. The total kharif oilseeds reached 137 lakh hectares , added 120 lakh hectares in last three weeks. Therefore, sharp recovery in kharif oilseeds sowing will encourage stockiest selling at current levels. The total daily arrivals have been increased from the level of 1.40 lakh bags to 1.50 lakh bags. According to data from the US Department of Agriculture, the global production of mustard seed in 2014-15 is expected to drop by 3.4 per cent to 68.64 million tonnes from 71 million tonnes a year ago. On the domestic front, data from the Solvent Extractors’ Association of India shows that the sowing area under mustard seed has increased to 71.38 lakh hectare for the 2013-14 crop year (October to September), up 5.8 per cent from the previous year. In the Alwar spot market in Rajasthan the price dropped -38.6 rupee to 3725.9 rupees per 20kgs. Technically market is under fresh selling as market has witnessed gain in open interest by 4.51% to settled at 59140 while prices down -19 rupee, now Rmseed is getting support at 3607 and below same could see a test of 3593 level, And resistance is now likely to be seen at 3636, a move above could see prices testing 3651.